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10 Things You Should Tell Your Car Salesman | Edmunds.com

Edmunds.comEdmunds.com Posts: 10,059
edited March 2017 in General
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10 Things You Should Tell Your Car Salesman | Edmunds.com

You hear about things you shouldn't tell a car salesperson. Here are 10 things you should say for a faster, less stressful purchase.

Read the full story here


Comments

  • Awesome article as always Matt!
  • Enjoyed the article. Just hadn't thought of taking that approach. I'm working on buying my daughter a car in a different state so I'll be putting the author's wisdom to work over the phone and email.
  • PF_FlyerPF_Flyer Pennsylvania Furnace, PAPosts: 8,887
    Maybe not in the exact wording, but these are all things I've said to my salesman for the 14 vehicles we've bought from him since 1979. Same dealer, same salesman for 38 years and we've always felt good about our deals. It pays to have a good relationship.

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  • karhill1karhill1 Posts: 163
    One thing I have found that works well is to tell the sales person what your are willing to pay, what you want for your trade. This sounds counter to what most "consumer advocates" suggest but it does work. It works if you have done your homework.

    I have found sales people seem to like this approach. I think it makes their job easier.

    To develop a price, start with the invoice. Reduce the invoice by the holdback and all incentives, both to the dealer and to the customer. For example, if the invoice is $30,000 the holdback is 2 percent of MSRP, say $660, and there is a dealer incentive of $1,500, your starting price would be $27,840. Also check sites like True Car and KBB to see what their pricing amounts too. Also check Edmunds' prices paid forums. If thou see prices less than $27,840, there is likely a hidden dealer incentive. In this case, adjust your price accordingly.

    Recognize, you will likely have to pay more but this price is not so low as to be laughed at by the dealer.

    Providing a price immediately does two things. First is eliminates the messy back and forth inherent in most car purchases. It informs the dealer you have knowledge. Second, it almost always gets the sales manager involved immediately. As any seasoned car buyer knows, the sales manager is the only person in the dealership who can actually sell at the dealerships lowest price.

    Only negotiate up from this number in small increments.

    For the trade, always difficult, take the average value of Edmunds, KBB, and NADA at the true condition of your vehicle. The dealer will always be $2,000 or more lower than this amount. Just a game. You will likely receive a bit less, but knowing the average value ensures you will not make a bad deal.

    Knowing the price you want to pay and the value of your trade gives you a net amount which you will have at your disposal at any point which will ensure you do not pay too much.

    To summarize, in this example your desired price may be $28,675 (the $27,840 plus 3 percent) and your desired trade value may be $12,000. So your net goal would be $16,675. Knowing this number will ensure you do not pay too much. Always negotiate from this net number.

    If the dealer offers to sell at $29,000 and will give you $10,000 for your trade, the net would be $19,000. Not such a good deal.

    On the other hand if the dealer offers to sell at $28,000 and will give you $11,000 for your trade, the net would be $17,000. A better deal.

    Finally, if the dealer will not meet your number just walk away. There is always another dealer.
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